Swot Analysis of Nestle

Topic: BusinessMarketing
Sample donated:
Last updated: June 14, 2019

The target market of Nestle MilkPak is upper middle and high class because lower middle and poor class cannot afford to buy UHT milk due to its premium price. •         It is a main weakness of MilkPak that there are different companies of milk but the name of nestle MilkPak is always stand in the last because of low advertising and marketing. OPPORTUNITIES:- •        There are substantial growth opportunities considering the average yield of Pakistani animals at only 1,100 liters/annum as compared to 6,000 liters/annum for animals in Europe and USA.

There are nearly 20 million milk producing animals in the country, mostly in Punjab (80%). •        The overall milk market in Pakistan is 20 billion liters, out of which processed milk contributes only 3 million liters. Nestle MilkPak along with other processed milk businesses contribute only 2% to this large market. Nestle MilkPak has expanded its product range by entering the cold dairy market recently by launching Nestle plain yogurt and now fruit yogurt is also added to it.

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        To expand the cold dairy products range, Nestle fruit yogurt is the latest addition to this group. •        The cold dairy market offers many opportunities for the company which can capitalize these products by banking on its superior quality milk. •        The coffee brand also offers many opportunities for the company to expand by tuning the taste of the masses towards coffee.Credit policy can be adopted to increase sales. • Increase advertisement can help growing market share. Cost effectiveness if maintained can increase sell of the product.

THREATS:- •        Price fluctuations due to rupee devaluation as raw material are imported. •        The uncertainty of economic conditions poses a great threat as the major funds invested in the country come from outside Pakistan. •        The present economic crisis in the world, led to the withdrawal of foreign management from the company and the investment has come to a halt. •        Competition with Nestle’s owns smuggled brands.         Effect of Seasonality’s upon sales.

•        Imported raw material, in some of the company’s products. •        Market segment growth could attract new entrants. •        Economic slow down can reduce demand. •        Two main competitors Haleeb and Olpers are main threat for MilkPak especially the Olpers is growing very fast. •Inflation is getting higher and higher so the purchasing power of the people is decreasing day by day. •        There is no entry barrier for new entrants as the Olpers has come in the market.         Taste of consumer has already developed which is hard to change. •        Current market situation SWOT Analysis Nestle Milkpak Strengths: • Strong Brand image • Quality Milk • Milkpak is known as the best UHT milk in Pakistan due to consistency in quality.

• Focus on research and development Weaknesses • Very low Marketing Campaigns Opportunities Milkpak brand may get entire or about entire market share by availing opportunities in Market that includes • Health Conscious people • Increased knowledge of health Competitors are not having any Ad campaign right now Threats • Competitors may get better time and space in different MediaThere is no loyalty for as far as milk is considered. • Quality is not being satisfied and taste as well by new comers. • They can start their marketing Campaign and Milkpak may loose market share • Nestle is facing the problem that is regarding the quality of milk. It is being perceive that infant or child belonging to poor family who use low quantity of milk then required in daily use are getting affected.

Price is also a factor. Milkpak comprises 50% of profit of firm. That’s why price compromise can not be done. • Firm is not advertising the milkpak on its official web site in first view although it is giving highest profit to firm.

• High collection of milk is required along with the presence of competitors. • Credit system is not possible for firm as being given by local loose milk producer. • Nestle is operating in a number of dairy products and milk allocation is first settled for other brand and then for milkpak.


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